Question

gross salary is 918000/month & tax is app 250k, how to save max tax, i just invest in mutual fund and going to invest in pension fund.

Answer 1

To maximize tax savings:

1. Invest up to 20% of your taxable income (or Rs2 million, whichever is lower) in an approved pension fund (VPS) for a tax rebate.

2. Ensure Zakat and charitable donations are made to approved institutions for deductions.

3. Consider salary restructuring — allocate part of income to tax-free allowances (e.g., medical).

4. File returns timely to stay on ATL and avoid higher withholding taxes.

5. Claim those from employer via IT Form 3 before year end.